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WSJ: Possibility remains open for future Apple iTunes price changes
Tuesday, May 02, 2006 - 11:19 AM EDT

"Apple Computer Inc. said Monday that it has renewed its contracts with major music companies that will allow it to continue offering songs for 99 cents each through its iTunes Music Store... 'We've renewed our agreements with the major music companies, and we're pleased to continue offering iTunes customers music at 99 cents per song from a library of over three million songs,' an Apple spokeswoman said," Nick Wingfield and Ethan Smith report for The Wall Street Journal. "However, people in the music industry familiar with Apple's deals said the contracts between Apple and the music companies cover wholesale pricing for songs , among other matters, and don't specify the 99-cent retail price, leaving open the possibility of future price changes."

Full article (free today) here.

MacDailyNews Take: The possibility remains open that the Sun will burn out in the future, too (the star: a long way off; the company: not so long a wait). If Apple has a wholesale prices contracted and they wish to keep the 99-cent per song price, then they will do so. We wouldn't mind seeing a $1.29 ($1.49?) per song option for higher bit rates, say 192kbps or, better yet, 256kbps or higher — if the labels would allow that quality to be sold online. Give the option and many will pay extra for the higher quality; just as even dial-up users are proven to choose "high" over "low" when watching streaming video online despite the extra wait.

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Related article:
Apple inks deal with big four labels: iTunes Music Store prices stay at 99-cents per song - May 01, 2006

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Reader Feedback: ( = registered)

May 02, 06 - 12:35 pm Comment from: Ampar

And the rebuttal from the music industry?

Cue the "Sounds of Silence."

May 02, 06 - 12:56 pm Comment from: Big Al

More money for better quality.

I'm all for that.

Who's going to tell the artists to produce better quality? Not The Labels. They could care less about quality. They package any crap along with one decent tune per CD.

Oh, you mean a different quality.

May 02, 06 - 12:59 pm Comment from: Horn Man

And Jobs response to the record label neophytes:

[Cue BTO]

"You Ain't Seen Nothin' Yet!"

May 02, 06 - 01:00 pm Comment from: jay

There's two kinds of quality. This one is about sound quality. That's a whole lot easier to solve than the quality of the songs themselves. That's a whole different problem.

May 02, 06 - 01:02 pm Comment from: mugwump

Future price changes -- lower, if Apple demands it.

May 02, 06 - 01:02 pm Comment from: Raymond from DC

If anything, the pricing direction should be *down*. The music companies are burdened with a near ZERO marginal cost for electronic distribution, beyond the few cents they throw the artist. It's Apple that bears the capitol investment, marketing and support costs, not to mention risk. The music vendors should consider themselves lucky they're getting 65%, which is well above the retail norm.

I also would not support higher pricing for "quality" editions, as that would constitute a "wedge" to higher prices generally. As capitol and communication costs come down the quality should go up on its own without a price increase.

May 02, 06 - 01:03 pm Comment from: G-ZUS

Nice take MDN!

DUH! Prices will eventually change. You can't buy a candy bar for a dime any more, either. raspberry

http://www.sissel.cc/blog/bloglet.html

May 02, 06 - 01:07 pm Comment from: Chunky Monkey

Hey, I know this isn't the right forum for this, but I figure it'll get more attention here:

Has anyone noticed something funny in the "Virus" ad from Apple's new campaign? If you watch closely, at the point where the PC guy is stating the number of PC viruses (114,000), it seems pretty clear that the number has been changed from what the actor originally said on camera.

Go watch it. His mouth movements don't coincide with "114,000".

I wonder if the number was adjusted "up" or "down"? I know that I always thought there were more than 114,000 viruses out there for PC's. Maybe Apple decided to go with a 100% verifiable number, so it's a little lower than it might be.

Thoughts?

May 02, 06 - 01:35 pm Comment from: Jim - the independent voter

Chunky... yeah you're right. It looks like he said "140,000 know viruses for pc's"

Probably go the script wrong and fixed it in post production.

May 02, 06 - 01:37 pm Comment from: Ampar

Good one, Horn Man! Welcome back!

And the music execs reply:

<cue Frank>

"Don't make me beg for your kisses,
Beg for your tender embrace,
I want your love, not your sympathy,
Please don't make a beggar of me."

May 02, 06 - 01:38 pm Comment from: Al Jazzoo

Possibility remains open for future Apple iTunes price changes

Duh! Of course, but the prices will go up together instead of variable prices.

May 02, 06 - 01:42 pm Comment from: William

The quality of songs offered by ITMS should be raised, yes. Should they charge more for encoding 64kbps more than a 128kbps file, no.

May 03, 06 - 12:12 am Comment from: actually

Napster's tracks are 192kbps, at 99c. So should iTunes'.

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